Global Markets Update
- U.S. equity markets closed higher overnight, with the Dow Jones up +0.6%, S&P 500 up +0.9% and NASDAQ gaining +1.5%, as the Covid-19 immunization drive was bolstered by U.S. regulators granting full approval for the vaccine made by Pfizer Inc and BioNTech SE. U.S. business activity continues to downshift, with growth slowing to an eight-month low in August against a backdrop of materials shortages, a lack of labor and an upswing in coronavirus infections. Sales of previously owned U.S. homes rose in July for a second month, with contract closings increasing +2% MoM to an annualized 5.99 million, a four-month high, indicating firmer housing demand as inventory constraints showed signs of easing.
- Long-dated U.S. treasury yields were mixed, with the 2-Yr yield higher at 0.226% and the 10-Yr yield lower at 1.253%.
- European markets. European equity markets closed higher overnight, with the Stoxx Europe 600 up +0.7% and both German DAX and U.K. FTSE 100 gaining +0.3%.
- Asian markets. Asian equity markets closed higher overnight, with the Shanghai Composite up +1.5% and Hang Seng gaining +1.0%, after PBOC pledged to support the economy with appropriate money growth, vowing to keep stable growth of credit, and calling for efforts to push down real lending rates. Nikkei 225 gained +1.8%, after data revealed Japan’s manufacturing PMI continued to expand, though at a slower pace, in August and manufacturers remained upbeat on consumer demand, expanding manpower at the quickest pace since January 2020. KOSPI closed +1.0% higher.
- WTI oil is trading at US$65.41 a barrel. Iron ore price is at US$142.51 per ton. Spot gold is trading at US$1,805 per oz.
ASX Market Update
- ASX performance. The ASX 200 closed +0.39% higher yesterday, led by gains in Real Estate (+0.88%) stocks.
- nib Holdings Ltd (NHF) slumped -11.0%, after signalling FY22 market conditions would be similar to the past year. Charter Hall Group (CHC) was up +6.5%, after reporting FY21 net income of A$476.8m, up +38% y/y. G8 Education Ltd (GEM) declined -5.7%, after scrapping interim dividend.
- Today’s trading. No major data is to be published.